Q2 2023 Fidelity National Financial Inc Earnings Call
[music].
Good morning, and welcome to F N S second quarter earnings call.
During todays presentation, all parties will be in a listen only mode.
Following the presentation. The conference will be opened for questions with instructions to follow at that time.
As a reminder, this conference call is being recorded.
I would now like to talk on the call over to Lisa Foxworthy, Parker SVP Investor and external relations. Please go ahead.
Great. Thanks, operator, and welcome everyone. Joining me today are Mike <unk>, Chief Executive Officer, and Tony Park, Chief Financial Officer, We look forward to addressing your questions. Following our prepared remarks, and we will have Chris Blunt <unk>, Chief Executive Officer, and Wendy Yang F&B as Chief Financial Officer join Us for the queuing.
<unk> portion of today's call.
Today's earnings call May include forward looking statements and projections under the private Securities Litigation Reform Act, which do not guarantee future events or performance, we do not undertake any duty to revise or update such statements to reflect new information subsequent events or changes in strategy.
Please refer to our most recent quarterly and annual reports and other SEC filings for a discussion of the factors that could cause actual results to differ materially from those expressed or implied.
This morning's discussion also includes non-GAAP financial measures that we believe may be meaningful to investors non-GAAP measures have been reconciled to GAAP, where required in accordance with SEC rules within her earnings materials available on the Companys website.
Yesterday, we issued a press release, which is also available on our website today's call is being recorded and will be available for webcast replay fnf's dot com.
It will also be available through telephone replay beginning today at three P. M. Eastern time August 16th 2023.
And now I'll turn the call over to our CEO , Mike Nolan.
Thank you Lisa and good morning overall, we have had another strong set of results at this mid year, Mark as we continue to navigate a volatile and challenging environment.
Starting with our title business, we delivered adjusted pre tax earnings in our title segment of $302 million and an industry, leading adjusted pretax title margin of 15, 8% we.
We are very pleased with this results, which reflects strong sequential margin improvement across our title related businesses.
This strong performance really demonstrates our approach to running the business.
Highlighting our ability to manage through economic cycles, and react quickly to changing order volumes.
It also demonstrates the expertise and discipline of our field managers and employees, who are critical to our success and our ability to deliver these results.
I'd like to thank all of our employees, who worked so diligently to build the field driven business we have today.
Consistently deliver an industry leading performance quarter after quarter.
Our performance. This year is a direct result of the actions we took in the back half of 2022, well in light of the steep decline in mortgage volumes, we reduced our field staff by 26% net of acquisitions.
This positioned us well given the low inventories coming into 2023.
In the first half of this year, we have continued to monitor expenses closely.
So far we're seeing solid sequential growth with residential purchase open orders per day up in both Q1 and Q2, a typical seasonal pattern and even holding strong in the month of July which is not typical since orders usually crest heading into the back half of the year.
We feel that the resiliency of residential purchase volumes, which have held up in a weak market and despite mortgage rates spiking to 7% of times is a testament to the underlying demand for housing.
<unk> in the country.
Commercial volumes are still holding up well, which is positive and in line with our expectations. We have generated commercial revenue of $500 million in the first half.
<unk> with the first halves, we saw from 2015 to 2020.
Looking at sequential volumes more closely daily purchase orders opened were up 12% over the first quarter of 2023 and up 2% for the month of July versus June .
And refinance orders opened per day were up 4% over the first quarter of 2023 and down 2% for the month of July versus June .
Our total commercial orders opened were 784 per day flat for the second quarter versus the first quarter of 2023 and up 3% for the month of July versus June .
Overall total orders opened averaged 5400 per day in the second quarter with April at 5300 May at 5700 and June at 5300.
For the month of July total orders opened were 5300 per day in line with June .
So far 2023 has been encouraging as we have found our footing in a more typical seasonal pattern it'll be it in a weak market and with a cost structure that is aligned with this environment.
From here, we remain cautious entering the second half of the year.
Given continued higher rates and volatility as always we will manage to order volumes in a given environment.
The near term pressures, we remain bullish on the mid to long term fundamentals of the business.
A clear benefit of our financial strength scale and profitability is our ability to invest in our business through cycles as we strive to further expand our competitive positioning in the industry.
We continue to strategically build and expand our title business through acquisitions, and recruiting talent and enhancing our title capabilities.
Our inherent platform is an area that we have been investing in recent years. This industry, leading end to end real estate experience platform is fully deployed across our residential business and integrated within our direct operations and is quickly gaining traction.
In fact over the past two years, we have had over $1 4 million users on the inherent platform comprised of 1.1, $1 2 million consumer users and 200000 real estate professionals and consumer engagement continues to be between 65% to 70% a strong success.
Right.
In the first six months of 2023 alone our real estate agent and transaction coordinator users have logged over 1 million sessions and nearly 90% were active in the last 30 days.
We believe this strong adoption demonstrates the value customers are receiving from the inherent platform.
We expect to continue to add functionality and content targeted at further enhancing the transaction experience of agents transaction coordinators and consumers.
Partnering to help real estate professionals grow their businesses and creating both market growth and efficiency opportunities for FNF over the near and long term.
Turning to our <unk> business. It has been over three years now since the 2020 merger and we are pleased with <unk> performance, which has exceeded our expectations.
<unk> has successfully transformed its business from essentially being a model line at the time of acquisition to now having a robust new business platform that is well diversified by product and channel and a profitable enforced book of business that is scaled considerably.
<unk> is profitably grown its assets under management from 25 billion at the 2020 merger to a record 46 billion at June 30th.
And the business is well positioned to both expand its spread based earnings and diversify through fee based earnings from its flow reinsurance and owned distribution strategies, which will ultimately drive margin expansion and improved returns.
With that let me now turn the call over to Tony Park to review <unk> second quarter financial highlights.
Thank you Mike.
Starting with our consolidated results, we generated $3 $1 billion in total revenue in the second quarter net earnings were $219 million, including net recognized losses of $16 million versus net earnings of $537 million, including 676 million.
Of net recognized losses in the second quarter of 2022.
The title segment contributed net earnings of $165 million. The F&B segment contributed $110 million and the corporate segment had a net loss of $56 million.
The net recognized gains and losses in each period are primarily due to mark to market accounting treatment of equity and preferred stock securities whether the securities were disposed of in the quarter were continued to be held in our investment portfolio.
Excluding net recognized gains and losses, our total revenue was $3 $1 billion as compared with $3 $3 billion in the second quarter of 2022.
Adjusted net earnings from continuing operations was $274 million or $1.01 per diluted share compared with $557 million or $2 per share for the second quarter of 2022.
The title segment contributed $226 million.
<unk> segment contributed $67 million.
In the corporate segment had an adjusted net loss of $19 million.
Turning to Q2 financial highlights specific to the title segment or.
Our title segment generated $1 $9 billion in total revenue in the second quarter, excluding net recognized losses of $50 million compared with $2 $8 billion in the second quarter of 2022.
Direct premiums decreased by 37% versus the second quarter of 2022 agency premiums decreased by 41%.
And escrow title related and other fees decreased by 18% versus the prior year.
Personnel costs decreased by 20% and other operating expenses decreased by 19%.
All in the title business generated adjusted pre tax title earnings of $302 million and a 15, 8% adjusted pretax title margin for the quarter.
Versus 18, 9% in the prior year quarter.
Our title in corporate investment portfolio totaled $5 billion at June 30 invested assets included $2 billion of fixed maturity and preferred securities having an average duration of three years and an average rating of a too as well as $600 million of <unk>.
Equity Securities $1 billion of short term and other investments and $1 $4 billion of cash.
Interest and investment income in the title and corporate segments of $93 million increased $55 million as compared with the prior year quarter, primarily due to higher income from our 10, 31 exchange business and cash and short term investments.
Given the higher rate environment, we would anticipate increased investment income through reinvestment of our three year duration fixed income portfolio maturities.
For the remainder of 2023, we expect quarterly interest and investment income to moderate in the $90 million range with stabilizing 10, 31 exchange balances and spreads and level of cash and short term investment balances.
Our title claims paid of $67 million were $11 million higher than our provision of $56 million for the second quarter.
The carried reserve for title claim losses is approximately $77 million or four 5% above the actuary central estimate.
We continue to provide for title claims at four 5% of total title premiums.
Next turning to Q2 financial highlights specific to the <unk> segment.
F N G hosted its earnings call earlier, this morning, and provided a thorough update so I will focus on the key highlights of its quarterly performance.
<unk> reported gross sales of $3 billion in the second quarter, a 3% decrease over the prior year quarter.
This reflects higher retail channel sales offset by slightly lower sales to institutional markets, which are expected to be lumpier and more opportunistic in nature.
<unk> net sales retained were $2 $2 billion in the second quarter, a decrease of 12% from the prior year quarter, reflecting flow reinsurance, which is which increased from 50% to 75% of <unk> sales in September of 2022.
As a reminder, <unk> utilizes flow reinsurance, which provides a lower capital requirement on ceded new business, while allocating capital to the highest returning retained business. This enhances cash flow provides fee based earnings and is accretive to <unk> returns.
<unk> record assets under management were $46 3 billion as of June 30.
Adjusted net earnings for the F&B segment were $67 million in the second quarter. This includes bond prepay income that contributed $4 million or <unk> <unk> per share and was offset by alternative investment returns below our long term expectations by $47 million or <unk> <unk>.
17 cents per share.
Let me wrap up with a few thoughts on capital and liquidity.
We remain focused on ensuring our balanced capital allocation strategy as we navigate the current environment.
We ended the quarter with $885 million in cash and short term liquid investments at the holding company level.
Fnf's consolidated debt to capitalization ratio, excluding OCI was 28, 3% as of June 30. This is in line with our long term target range of 20% to 30% and we expect that our balance sheet will naturally delever as a result of growth in shareholders equity.
<unk> a OCI.
Going forward, our consolidated annual interest expense on debt outstanding is approximately $175 million comprised of approximately $80 million for FNF holding company debt.
And $95 million for F&B segment that.
Following our record level of share repurchases in 2021 and 2022 at a total combined cost of $1 billion. We are prudently moderated our repurchase volume in the first half of this year to preserve financial flexibility as we navigate the challenging market. Therefore there.
There were no share repurchases in the second quarter.
We continue to view, our current annual common dividend of approximately $500 million.
As sustainable during the second quarter, we paid common dividends of <unk> 45 per share for a total of $121 million.
The dividend is reviewed quarterly and expected to increase over time subject to board of director approval.
This concludes our prepared remarks, and let me now turn the call back to our operator for questions.
Thank you.
Ladies and gentlemen, Viva and ill be conducting a question and answer session.
I'd like to ask a question. Please press star and one on your telephone keypad.
Confirmation tone will indicate your line is in the question queue.
You May press Star two if you would like to remove your question from the queue.
All participants using speaker equipment, it may be necessary to pick up your handset before pressing the stock east.
Ladies and gentlemen, one moment, please while we poll for questions.
Our first question comes from the line of Bose, George with K B W. Please go ahead.
Hey, guys good morning.
Mike I know you gave the July order trends I'm curious if you have any color on just what's happening in August .
The move in rates or any early read on that.
Yeah, I think it's too early to.
To look at August we really just have.
The first week, which was a shortened week end.
I just don't think looking at that small data set would.
We provide the right direction, but I think the fact that orders have held up as well in July .
It's again, a testament to the strength of the market.
If you look through as we went through the quarter, even when rates spiked at different points. The the the order count has held up very well.
Yes.
Okay. That's helpful. Thanks, and then actually just switching over to <unk>.
F N G.
In the past you've talked about to reinsure blocks.
Blocks over there he said.
L. A possibility and also the FTE management agreement with Blackstone I think now has been extended through 2029.
Comment about sort of the benefits of that whether that has any impact on a if theres a block transaction does the Blackstone agreement had impact that in any way.
Sure. This is Chris so yeah. That's that is always an option that remains for us to reinsure out a block.
As a means of freeing up capital so nothing's changed there the Blackstone agreement Yeah. That's a big net positive. So it's order of magnitude of almost a 25% reduction in fees going forward on assets over $40 billion.
And that's that fee agreement on the $40 billion runs off over time so.
So it's quite impactful for us.
It does influence.
Block deals, but we know there are blackstone affiliated reinsurers and folks that would probably be excited to have blackstone manner to the money. So it's probably a bit of a constraint on doing a really big block transaction, but it's it doesn't rule it out.
Okay, great. Thank you.
Thanks.
Thank you.
Our next question comes from the line of so mostly with BP I T. Please go ahead.
Hey, good morning, guys. Thanks for taking the questions. This morning.
Good morning. So the first one is just on F&B and this is sort of our two partner first one just being you know wanted to get your updated thoughts on whether you think <unk> continues to strategically fit within the FNF fold or maybe as a Standalone company and then second considering that there was the ADL transaction, you'll have there been.
Any discussions with the board around potential options that youre, considering beyond just the tax free spend that you've talked about before.
Yeah. Thanks. Thanks for the question. This is Tony maybe I'll start and I know, Mike and Chris.
Might want to weigh in but I would say from the board's perspective it.
It couldnt be more pleased about the performance of F and G and really how it validates if you will our investment thesis that we.
We had when we made the acquisition, which is if and.
When interest rates go up <unk> will add.
And earnings that are consistent and stable as as you've seen and grow over time as rates are going up and maybe the title insurance market.
Comes down a little bit and that's exactly what we've seen.
It's fair to say that our share price has not performed.
As we would have hoped kind of during the ownership of this although some of that may have been may be changing really over the course of at least the last 90 days.
But we believe regardless we're creating.
Real value and highlighted by the <unk> deal, but we feel like values being created F and G actually throws off a lot of cash currently we're reinvesting that cash in sales growth because we're getting great returns from that and continuing to build value in our.
Investment, but keep in mind, you can really realize that cash flow and I think when he said something like $800 million.
Annually is being thrown off from the block.
Currently and that just grows over time, but we could realize that value at any time, if we wanted to constrained sales.
And at this point, that's not what we want to do we want to continue to.
To create value in that business and that's what we're doing so in terms of Optionality, we've talked about before we could hold.
We could spin now we could span later in a tax free manner, we could sell we could merge it with a company we can reinsure up a block but.
But at this point as I as I mentioned earlier the board is very pleased with the performance and the and the value that we're creating and actually we're getting we're getting cash flow through the dividend that <unk> paying so it's you know it's been a real positive.
Okay.
Great Yeah.
And then I guess on title Tony.
And if I, if I sort of taking a look at your residential business. This quarter. The 230000 orders and maybe just run rate that you know on an annualized basis you'd get to somewhere around 90 950 on orders and you did a 15 eight margin this quarter. So I mean, assuming that commercial sort of a trough this year it seems like.
Opens or better as well so that's what it is suggesting is there.
The reason that margins next year can get sort of a mid to high teens, if we sort of get some recovery on the resi side, obviously, you're understanding there's going to be quarterly variances here.
Yeah. This is Mike I would say, if we get a better revenue environment in 'twenty four.
In a more more normalized levels, let's say that the 15.
<unk> to 'twenty that we've talked about in the past is certainly what we would expect we've.
We've done a lot of work on the expense side and I think we are well prepared to take advantage of.
Of an improving market I think the second quarter's a good example of that.
With the margin lift we got off the first quarter of 580 basis points. It was really just we got a commercial market.
That was good in the second quarter and then we took advantage of an improving.
Residential environment sequentially, and we had the expense discipline to do that so as we go into 'twenty four we.
We will be well prepared on the expense side and it will really be about.
How well well two things, one commercial holding up and how well the residential market rebounds.
On this point.
Looking at you know when the last time rates were this high we've got 7% interest rates and that was back in 2001 and in 2000 rates were 8% and those were two of the weakest transactional markets I kind of remember in my career, but then rates came down to six in <unk> and kind of stayed there around the <unk>.
Number for the next three or four years.
And the market really grew tremendously both in terms of refinancing resale activity now, saying that will happen necessarily but.
If we get a lower interest rate environment as we move forward over the next 12 to whatever months.
I think the opportunity for us is very strong.
Alright, Thanks, a lot guys.
Thanks.
Thank you.
Our next question comes from the line of John Campbell with Stephens, Inc. Please go ahead.
Hey, guys. Good morning, Congrats on a great quarter.
Thanks, John .
Sure.
On the title field staff I mean, I think <unk> marks the first sequential increase you guys have seen maybe since <unk> of 'twenty one.
This is probably pretty obvious question the obvious observation, but.
You guys are seeing in the pipeline and just given how much volumes have dropped I think it's pretty clear signal, but how are you guys still like you bottom out here or is that a pretty fair assessment.
John I missed the very beginning of your question could you repeat it please I'm sorry.
Yes, no problem.
Title filled stuff too.
<unk> feel okay at this time.
Yes, so I think.
As we talked about in the script that we kind of took 26% out last year, we had some modest reductions in the first half.
And we were watching staffing very closely and really looking at that.
In the lens of where are we going to get the central sequential improvement in residential, which we absolutely got which was great and given the rates I think.
There are a welcome welcome development I think as we go into the back half of the year. We will look at staffing very closely related to the order volumes, we would expect to get sequential declines and particularly our purchase open orders just like we have in just about every other year.
Well, we may need to make some adjustments accordingly.
And really wanted to be in a good position as we go into 'twenty four.
To deal with which is typically a seasonally tough first quarter and then <unk>.
Really have the company in a great position to take advantage of improving order volumes.
Okay. It makes sense and then relating to the last question I mean.
Year to year, a lot can change so it's hard for you guys to really pinpoint title pretax margins, but quarter to quarter, you get a little bit more visibility you guys are now sitting here halfway through the quarter now you've got a book of business that is going to give you. Some insights kind of on what remains but my question here is if.
Do you assume just kind of a modest sequential drop in revenues.
Thank you.
You guys just posted a 15, 8% title pretax margin well ahead of US. This quarter do you think you can get near that Mark assuming just a modest drop of revenues into <unk>.
Yeah, I think Theres a couple of things that go it's Mike I think there's a couple of things that go into it. If it's you know a very modest drop in revenue. We should again have very good margins I think the expenses as I said before.
In a good spot what can impact margin.
There'll be a little bit cautious about is sometimes the mix of agency and direct and the revenue side, Ken can make a difference in margin as you know there is a pretty significant difference between agency gross margins and direct gross margins. So that can that can clip your.
Your margins, even if you have the same gross revenue.
Commercial still needs to come through I think as we've been expecting it to.
And there's always some concern around that or caution around that just given the volatility.
We had.
10 banks regional banks that got downgraded. This week does that does that impact commercial as we move through the back half of the year right. So.
But if other things being equal if revenues holding up I would expect margins to be pretty good in the third quarter as you get to the fourth a little bit more seasonal falloff in the residential side and we'll just have to see where we're at as we kind of get through the back end of this quarter.
Okay. That's helpful. And then one last one here on escrow and other within title, we've always kind of modeled that near the direction of direct premium revenues. It looks like that dropped about half the rate of direct this quarter I mean, I know you've got title point in the mix now so maybe if you can unpack that and maybe just to kind of rule of thumb how to.
About modeling that realize are directed at least over the next couple of quarters.
Yes, John this is Tony that's a valid point certainly part of that line item you should model exactly as direct title premiums would change that's really our escrow fees and to some extent some other fees that go in there, but there are some other businesses and.
And the best probably the best spot to find those would be in our footnotes to our Qs and K, where you can see that broken out, but we have businesses like loan care, which is our loan sub servicing business and home warranty.
And to your point title point in a couple of others. Although title pointed out a trend fairly closely I think with the title business overall, but we did have.
So pretty strong performance from both loan care and home warranty in the in the second quarter and Thats, probably why there's a bit of a disconnect in terms of the trajectory of the change in that line item relative to direct premiums.
Okay. Thanks, and then just the margin on those two that you just call it wound care and home warranty how does that compare roughly to the blended.
Margin.
It really depends on the performance to meet home warranty can be a single digit performer at times and all the way up to a strong quarter, maybe even 15%.
But generally lower than what we would generate in the title business and then loan care is another one of those where you could have a 5% performance in a tough quarter, but when you say, Mike it's more of a 12% to 15% performer loan care all over.
For a longer time horizon, but you can have periods, where it can get.
Get single digits, but we would expect it to be I think over over a longer horizon a tender.
13%, 14% margin producer.
Yeah.
Thanks for the color guys.
Thanks.
Thank you.
Ladies and gentlemen reminder, if you wish to ask a question. Please press star and one.
Our next question comes from the line of Mark Hughes with <unk> Securities. Please go ahead.
Yeah. Thank you very much good morning.
Good morning, Tony.
Did you give the year over year for July for commercial and purchase.
Hum Daily orders I. Thank you.
The sequential but I'm sort of curious.
The year over year as well.
Yes, Mark it's Mike.
So we opened in the second quarter.
For commercial per day, 784, and that was down 22% from the second quarter of <unk>.
22.
Which was 1003.
And then I was thinking you gave July .
On sequential basis.
You gave the year over year July over June was up.
Mr. Lai over July do you have the July over last year's July Yeah, Let me find it we didn't actually give that we gave.
We gave July over this year's June .
July over last year's June Mark was down 13%.
Through July over July because the comps get better obviously is that we had commercial falloff in the back half of last year as you remember so.
Accounts improved in July .
Okay.
<unk>.
Residential purchases.
Bill I over July .
I do.
Okay.
It was down.
6%.
No.
And then.
Based on what you've seen the backlog and the commercial any commentary about revenue per order.
I think.
Nothing real specific I think it probably will stay in the range that we've seen.
I think our national commercial fee has been running in the 13000 plus range.
We anticipate that that to stay in that range.
Certainly off the highs of 'twenty, two but but.
Actually a very good number when you look at prior years 'twenty two and then the.
Okay.
The total commercial fees I think running around nine.
9300, or 9500 9500, this quarter and again I would say that 9000 plus range. We continue to see that as we move through the back half.
Okay, great. Thank you.
Thanks.
Thank you.
Our next question comes from the line of Geoffrey Dunn with Dowling and partners. Please go ahead.
Thanks, Good morning.
Good morning Arnie.
Tony what is the remaining capacity dividend capacity from the regulated entities and what does the back half expectation for capacity from the unregulated.
From the regulated.
<unk> been taking some dividends of noncash dividends, we had some common stock in there that we've been moving out which was noncash so in.
In terms of cash.
Full year is probably from the regulated is somewhere around 400 million.
And we've already taken.
I mean look we've already taken about $2 20 of that so maybe $1 80 in the in the balance.
In terms of the unregulated that's kind of that's a good question because that would have me predicting what we're going to do real time since that's not predetermined.
Cash and earnings that were actually going to generate and so that one's harder harder to estimate and I would have to give guidance on that front. So.
Maybe abroad overall commentary.
Would be.
Landing at year end absent share buybacks and again I'm not suggesting that's where we are but if we didn't do any share buybacks. I think we ended the year at somewhere around a $1 billion and holdco cash.
Okay, and then with respect to buyback you know obviously the environment's uncertain.
But it's been uncertain for a while now.
As part of the moderation in the first half having to do with these noncash dividend you do continue to generate strong cash flow.
The holding company is in a great position in the overall company is in a good financial position. So as we think about maybe some of these non cash dividends coming out and being replaced by cash dividend flow again next year is that what helps restore that along with the incremental economic data points, we get along the way or is it really.
You're holding back in this kind of higher for longer environment.
Yeah, I mean, I think it's a combination although I don't think the noncash dividends are really impacting the buyback decision at all of those those are really material I just thought I would throw that out there.
I think just the market overall and not knowing exactly.
Where we land.
Think we've been pleased with the market given where rates have gone but.
We didn't know that going into it and so we've been fairly conservative I think we like to preserve the financial flexibility, we do have a $500 million commitment.
On the common dividend and so we.
We'd like to be conservative in terms of Holdco cash, but but certainly if we see the market continue to stay strong and improve as we get into next year. You are right, we generate a lot of cash.
And <unk> is generating cash now and I could foresee.
F&B, even paying a bigger dividend to us and so there could be a lot more cash as we look to next year and a lot more opportunity to.
Raise the dividend or buyback stock or make acquisitions or whatever it might be.
Okay. So I think throughout the call today, you've mentioned wanting to be well positioned for 'twenty four.
Am I hearing you correctly that it seems like buyback is going to be less of an emphasis even for the remainder of the year.
It's really getting.
Very firm footing going into 'twenty, four and maybe then we see an acceleration I once again.
Yeah, all else held equal.
I think thats.
Certainly a possibility I don't know if im going to probability yet because it's going to be a board decision and we they revisit that every quarter and we don't pre announce that but yes.
Yes.
If I were.
Guests seeing I would say.
More likely to be.
Be more aggressive on the buyback front in 'twenty four then the.
Balance of 23.
Alright. Thanks.
Hmm.
Thank you.
Ladies and gentlemen.
This will conclude our question and answer session I will now turn the conference back over to CEO , Mike Nolan for closing remarks.
Thank you we are proud of our strong performance in the first half of the year. Despite continued uncertainty and volatility in the current macro environment F&I.
<unk> is well positioned to navigate the current market cycle and continues to build and expand our title business for the long term.
Likewise, <unk> profitable growth demonstrates its strong momentum with many opportunities ahead to further extend or expand the business drive margin expansion and improved returns. Thanks for your time. This morning. We appreciate your interest in FNF and look forward to updating you on our third quarter earnings call.
<unk>.
Yes.
Thank you for attending today's presentation and conference call has concluded you may now disconnect your lines.
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Yes.
Yeah.
Yes.
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Okay.
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Hum.
Okay.